WENTWORTH & HAMILTON

This matter came before Foster J concerning an application by the applicant against the respondent. The dispute revolved around the management and disposition of proceeds from the sale of a property identified as Property D, and the subsequent handling of another property, Locality C. The applicant sought orders to restrain the respondent from dealing with the proceeds of Property D and to impose conditions on any future dealings with Locality C.

The court was required to determine the terms upon which the proceeds of the sale of Property D could be applied, and the conditions under which the respondent could deal with Locality C, including encumbering, selling, or leasing it. The court also had to consider the removal of a caveat registered by the applicant against Property D and the implications for a caveat registered by the applicant against Locality C.

Foster J ordered that pending further order, the respondent was restrained from using the proceeds of sale of Property D except for specified purposes, including payment of sale costs, discharge of secured loans and mortgages, payment of $60,000 into a controlled monies account held in trust for the parties, and the balance to the respondent. The respondent was also restrained from encumbering, selling, or charging Locality C except under strict conditions, including limitations on borrowing amounts, the application of borrowed funds to Sydney metropolitan residential property, and notification requirements to the applicant regarding any encumbrance or sale. The respondent was permitted to lease or licence Locality C on the best terms available. The applicant was ordered to remove the caveat against Property D, and the respondent was to take steps to remove the caveat against Locality C upon receiving notice of proposed dealings. The costs of the application were reserved.